Previous studies of the information content of the implied volatilities from the prices of call
options have used a cross-sectional regression approach. This paper compares the …

We examine stock-market volatility around the quarterly expirations of stock index futures
contracts and nonquarterly expirations of stock index options, using estimates of the volatility …

This paper examines multiperiod corporate financial policy in a world where the only market
imperfection is taxation. The optimal financial policy determines the firm's capital structure …

This paper develops and tests procedures for ranking the performance of security analysts
based on the timeliness of their earnings forecasts, the abnormal trading volume associated …

This paper seeks to provide an explanation for why corporate officers manage the disclosure
of accounting information. We show that earnings management affects firm value when …

By buying convertibles and shorting the underlying stock, hedge funds distribute equity
exposure to well-diversified shareholders. We find that firms with characteristics that make …

This paper documents significantly negative stock price reactions to shareholder-initiated
class action lawsuits. We find that shareholders partially anticipate these lawsuits based on …

This paper examines the ability of the risk-shifting hypothesis and the backdoor-equity hypothesis
to explain firms' decisions to issue convertible debt. Using a security choice model that …

Firms that issue convertible debt have high debt- and equity-related costs of external finance.
Existing theories of convertible debt finance differ primarily in their identification of the …

Lease valuation models often begin with the assumption that leases and debt are substitutes.
This paper demonstrates that, because leasing is a mechanism for selling excess tax …